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If you’ve felt like the restoration industry has become more challenging to navigate in recent years, you’re not alone. According to recent survey responses from restoration professionals nationwide, some real, shared challenges impact operations, growth, and profitability.

Whether you’re a seasoned veteran or a new business owner, these top concerns may hit close to home and understanding them can help you act. As you read, notice what some of your peers have said about these issues.

Insurance company headaches

Let’s start with the elephant in the room: insurance companies. Contractors report a range of issues, including slow payments, claim denials, reduced scopes, and unfair practices. Many of you feel like adjusters and third-party administrators (TPAs) are more interested in minimizing payouts than supporting proper restoration.

“Insurance companies are trying to control pricing, shorting scopes, and scaring clients out of filing claims.”

Does this sound familiar? This type of control affects your ability to serve clients properly and to get paid what you’re worth.

Cash flow strain

It’s no surprise that cash flow remains a top pain point, given payment delays and mounting project costs. Poor cash flow disrupts everything, whether it’s waiting on receivables, managing payroll, or handling upfront supply costs.

“AR collections and cash turnover are slowing down… and the claims industry is slowing too.”

You can’t scale or invest in your team if you constantly wait for checks that should’ve cleared weeks ago.

Labor and staffing shortages

Hiring and retaining quality talent is another consistent challenge. Restoration work demands skill, commitment, and availability, which aren’t easy to find in today’s job market.

“Finding good labor help is nearly impossible.”
“We can’t keep motivated employees.”
“We get someone good, and they quickly start looking at better options.”

Many of you noted high turnover, lack of skilled trades, and the struggle to build a team you can rely on. Add in unpredictable weather patterns and labor availability, and staffing becomes a full-time job.

Competition—fair and otherwise

There’s healthy competition, and then there’s cutthroat, race-to-the-bottom competition that undercuts your value. Several of you are seeing a rise in low-quality players entering the industry due to low barriers to entry, along with growing pressure from preferred vendor networks and private equity-backed national firms.

“Too much competition… and ‘pay-for-play’ companies dominate local work.”
“Consolidation is creating unfair advantages.”

You’re not alone if you’ve been edged out of jobs because you weren’t part of a program or because your pricing reflects actual costs.

Rising costs and stagnant pricing

While everything from materials to insurance premiums continues to rise, many say pricing hasn’t kept up, especially when you’re stuck using fixed estimating platforms like Xactimate.

“Labor rates and material costs are increasing, but pricing programs don’t reflect reality.”

Without pricing flexibility, even well-managed jobs can squeeze your margins thin.

Analyze the 2025 Restoration Benchmarking Survey Report and do your due diligence in comparing your operations to the industry.

About this report: The data recorded in this survey is based on answers from restoration contractors who responded to invitations to participate. Results are not necessarily based on audited financial statements.